While inflation and high interest rates pose challenges for many of the businesses we serve, there is good news for small businesses. According to new analysis released by TD Bank, from 2020 to 2023, small business creation grew at the highest rate since 2004, with 2023 seeing the highest business application rate ever. And these businesses are creating jobs. Both “microbusinesses” with fewer than five employees and mid-sized businesses saw notable job growth.
Another piece of good news is that women- and minority-owned businesses are making great strides in increasing their representation among business owners. Nearly half of new businesses started in 2023 were owned by women. In 2023, business ownership among Black Americans increased at the fastest pace in the past 30 years. There were also significant increases among Hispanic entrepreneurs.
It’s great to see news like this because it’s a powerful reminder of what we do at Markham, as a company that supports entrepreneurs. It’s clear that entrepreneurship is part of the American Dream for a growing number of Americans, bringing freedom, opportunity, and unparalleled means to build personal wealth. Not every new venture is successful. Sometimes it takes multiple tries for founders to launch a successful, profitable business. But there’s no better teacher than on-the-job experience. Few jobs are more rewarding than running a business that provides great service to customers, team, and community.
Entrepreneurship is not for everyone, but it is becoming an increasingly important life skill and a source of income or side income for many. As innovations such as AI transform the economy every day, the barriers to entrepreneurship are lowering as new, easy-to-use technologies enable founders to accomplish more with less time and money. More workers will have the opportunity to find an untapped niche in the market and come up with an idea to fill it.
Meanwhile, entrepreneurial education continues to improve, enabling more people to become business owners. In the past, few MBA programs taught entrepreneurship. The argument was that “entrepreneurship cannot be taught.” But in the past few decades, we’ve seen that academic programs and accelerators can help uncover latent talent in people who have had little exposure to entrepreneurship. While few people are born with an entrepreneurial spirit like Elon Musk, Sara Blakely, or Oprah Winfrey, being a superstar isn’t necessarily necessary for success. From self-employed business coaches to CEOs of mid-size companies, there is room in the economy for many types of business owners.
We look forward to seeing the full picture of these companies emerge over the next decade. Today’s one-person startup may become tomorrow’s mid-sized enterprise. We’re standing by to serve as trusted advisors.
For now, I hope you are enjoying the beautiful June weather this weekend that has finally arrived. Happy Friday everyone!
